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Factoring for Clothing and Textile Companies

August 8, 2022
Phil Cohen

Same Day Funding to Fulfill Large Orders

The clothing and apparel industry moves fast. Is your cash flow up to the challenge? If unpaid invoices are standing in the way of your fashion business success, apparel factoring can help.

How Can Apparel Factoring Help?

Your margins may be tight, but your cash flow doesn’t have to be. Clothing and textile factoring works to eliminate the gaps in your cash flow. Rather than wait 40 to 60+ days for customers to pay, a factoring company purchases your invoices and issues an instant advance. This means no more waiting and stressing out over slow-payers.

Factoring invoices generates working capital within one day. This allows you to plan for employer deduction remittance, payroll and purchase supplies. Access to capital helps you to stay ahead of the competition while better planning your daily and future operations.


Get Your Free Apparel Factoring Quote!

How Does Factoring Textile Invoices Work?

Factoring is a way for a business to increase their liquidity without going into debt. Clothing and textile companies sell their accounts receivable to a factor who assesses the ability of the account debtor to pay the invoice. If the debtor has a good credit rating, the factor will pay the business a percentage of the value of the invoice owed. This could be 80-90 percent of the value, paid within 24 hours.

When the customer pays the invoice, the factoring company will give you the rest of the value of the invoice minus a small factoring fee. There is a non-recourse factoring option that will pay the advance percentage as well as the reserve release, even if the customer does not pay their bill. 

Factor Finders offers an account management system that will check their client’s status 24/7 and send monthly statements. Clothing and apparel factoring offers the opportunity for designers to focus on the creative side of their business and have the cash flow they need without worrying about the back office.

Accounts Receivable Factoring is Flexible and Debt Free

Accounts receivable factoring has proven to be the best way to get quick cash without adding debt. Any company that offers goods or services on credit is eligible for factoring. You can select which invoices to factor and keep complete control of this line of credit. You will not need a credit check or need to wait for 30 to 90 days to receive the cash as with a bank. If you own a clothing and textile company, you should call Factor Finders today to access the capital to take your business to the next level.

Get Started Today

Contact us at 855-322-8671 to find out if factoring is right for your apparel business.

Factor Finders
Talk to Us: 855-322-8671
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